News and Analysis
OMA Connections Partner, Clark Schaefer Hackett (CSH), posts: “In the wake of passage of the Tax Cuts and Jobs Act (TCJA) late last year, the IRS has taken one of the first critical steps to institute the law’s overhaul of the federal income tax regime. The IRS has released updated withholding tables that indicate how much employers should hold back from their employees’ paychecks to satisfy workers’ tax obligations. The new tables may provide the correct amount of tax withholding for individuals with simple tax situations, but they’ll likely cause other taxpayers to not have enough withheld to pay their ultimate tax liabilities under the TCJA.”
Read further analysis from CSH about the new tax tables. 1/19/2018
This from OMA Connections Partner, Clark Schaefer Hackett: “… Although we are anxiously awaiting more guidance regarding many provisions of the new law, the accounting for meals and entertainment expenditures is one area where businesses need to take immediate action.”
Here is guidance from CSH. 1/22/2018
OMA Connections Partner, Calfee, writes: “… the TCJA (Tax Cuts & Jobs Act) … includes several significant changes about which employers should be aware. These changes include the elimination of a tax deduction related to nondisclosure agreements in sexual harassment settlements, a tax credit for providing paid family and medical leave, and changes to employee income tax withholding tables, together with a pending revision of Form W-4. Employers of every size will be affected by these changes, …”
Read more from Calfee. 1/24/2018
The tax advisors at OMA Connections Partner, Schneider Downs, have just compiled a tax reform guide that highlights many of the most impactful changes affecting U.S. individual and business taxpayers. 1/19/2018
The complete overhaul of revenue recognition accounting standards has significant repercussions for manufacturing and distribution companies. So, it’s critical to understand these guidelines and the potential business impacts.
OMA Connections Partner, Clark Schaefer Hackett, has compiled a white paper that covers important highlights of the new standards and provides examples of how the new guidance might apply for a manufacturer or distributor.
Download your copy here. 1/22/2018
OMA tax counsel Justin Cook of Bricker & Eckler summarizes the pending case: On January 12, 2018, the U.S. Supreme Court granted a writ of certiorari in State of South Dakota v. Wayfair, Inc. Depending on the Supreme Court’s decision in this case, it could have an enormous impact on businesses nationally. A 1967 U.S. Supreme Court decision prohibited states from requiring sellers to collect and remit use tax on the sale of goods in states where the seller has no physical presence. This “physical presence” standard was affirmed in Quill Corp. v. North Dakota in 1992 and remains the law of the land.
In light of the increasing importance of online sales, South Dakota enacted a statute requiring sellers that derive at least $100,000 in gross revenue from South Dakota sales or that engage in at least 200 South Dakota sales in a calendar year to collect and remit South Dakota use tax, regardless of whether the seller has a physical presence in the state. A number of large online retailers challenged the South Dakota law as unconstitutional, and the Supreme Court will now reexamine the “physical presence” standard.
If the Supreme Court strikes down the “physical presence” standard, states across the country, including Ohio, could require remote sellers to collect and remit use tax in the same manner that sellers operating from a brick and mortar location in the state collect sales tax from customers. Whether Ohio can impose this obligation on remote sellers depends on the Supreme Court’s decision in Wayfair, which will be heard in the upcoming term. 1/18/2018
Manufacturers still have time to sign up with the Ohio Department of Taxation (ODT) for the new centralized collections and filing of their municipal net profit taxes.
Taxpayers should opt in now through ODT’s website to register for centralized filing of 2018 returns.
To file centrally, taxpayers must register on or before the first day of the third month after the beginning of a taxpayer’s fiscal year (March 1 for calendar year businesses).
You can learn more about the program from this ODT video. 1/11/2018
According to OMA Connections Partner, Clark, Schaefer, Hackett, “The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions. Here are the most important changes in the new law that will affect businesses and their owners.” 1/4/2018
All penalties and half the interest will be waived on qualified delinquent taxes for both individuals and businesses in Ohio’s tax amnesty program.
The Ohio Dept. of Taxation has created this comprehensive tax amnesty website where taxpayers can learn more and calculate penalty and interest savings. 1/4/2018
The Internal Revenue Service (IRS) has issued these 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, or medical purposes.
The business mileage rate is 54.5 cents per mile, up 1 cent from 2017. 1/4/2018